A buyer in Palm Beach County is purchasing a waterfront home for $850,000 with a jumbo loan of $650,000. The lender charges 1.5% origination fee, 0.75% discount points, and a $1,200 underwriting fee. The documentary stamp tax on the deed is $3.00 per $1,000, and intangible tax on the mortgage is $2.00 per $1,000. If the buyer pays all lender fees and intangible tax, while the seller pays deed stamps, what is the buyer's total cost for these items?
Correct Answer
C) $17,125
Origination fee: $650,000 × 1.5% = $9,750. Discount points: $650,000 × 0.75% = $4,875. Add the $1,200 underwriting fee and $1,300 intangible tax: $9,750 + $4,875 + $1,200 + $1,300 = $17,125. Deed stamps are paid by the seller under the stated facts. Option C is correct.
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Related Concepts
Monthly interest is the portion of the total annual interest that is paid or accrued each month.
Net operating income (NOI) is the annual income generated by an income-producing property after deducting operating expenses, but before deducting mortgage payments, income taxes, and depreciation.
Net Operating Income (NOI) is the revenue a property generates after deducting all operating expenses.
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The buyer gets a $280,000 mortgage in Florida. The intangible tax is:
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- → Property taxes of $2,400 for the year have been paid by the seller. The closing is on September 15th (day 258 of 365). How much does the buyer owe the seller for the unused portion of prepaid taxes?
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In Florida, all of the following closing costs are typically negotiable between buyer and seller EXCEPT:
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A real estate licensee in Fort Lauderdale is representing a buyer who received their Closing Disclosure three days before the scheduled closing. The buyer notices that the lender's title insurance premium increased by $300 from the Loan Estimate, and the appraisal fee increased by $75 due to the property's unique features requiring additional analysis. What should the licensee advise the buyer?